Main reasons to start your Polperro lease extension

Main reasons to commence your Polperro lease extension today:

A Polperro leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Polperro residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Polperro property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Polperro will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.

Polperro property with a lease extension is almost the same value as a freehold

Leasehold properties in Polperro with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not lend with a short lease

Banks and building societies are making their criteria more stringent and many now require flats to have a minimum of sixty if not seventy years left once the mortgage has expired. Given that many flats in Polperro were created in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Polperro lease extensions?

Regardless of whether you are a tenant or a landlord in Polperro,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Polperro valuers.

Polperro Lease Extension Case Studies:

Callum, Polperro, Cornwall

In recent months Callum, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Polperro. In buying his property 18 years previously, the lease term was of no importance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Callum extended the lease just in the nick of time last June. Callum and the freeholder eventually agreed on a premium of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £850.

Polperro case:

In 2013 we were contacted by Dr N Khan who, having acquired a one bedroom apartment in Polperro in March 2011. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical properties in Polperro with 100 year plus lease were worth £290,000. The average amount of ground rent was £60 collected quarterly. The lease came to a finish on 26 May 2106. Having 80 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.

Polperro case:

In 2013 we were phoned by Mr E Wood who, having bought a first floor apartment in Polperro in July 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Polperro with a long lease were worth £200,800. The mid-range amount of ground rent was £65 billed quarterly. The lease expired in 2086. Having 60 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of fees.